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Part 1

Application

2. (1) Subject to subsection (2), in respect to the applicable fuel and in respect to the gasoline compliance period or the distillate compliance period, as the case may be, sections 3, 4, 5, 7, 8, 17, 18, 22 and 23 do not apply to a person who produces or imports gasoline, diesel fuel, heating distillate oil or renewable fuel where the total volume of the fuel produced plus imported is

(a) if the compliance period is the same as a calendar year, less than 400 m3 during the year; and

(b) if the compliance period is not the same as a calendar year, less than 400 m3 during any years that comprise part of the compliance period.

(2) Subsection (1) does not apply to any person who creates or exchanges a compliance unit during the compliance period.

(3) These Regulations do not apply to any fuel that is imported in a fuel tank that supplies the engine of a conveyance that is used for transportation by water, land or air.

Prescribed Quantities

3. (1) Effective September 1, 2010, for the purposes of section 139 of the Act, the quantity of renewable fuel in a primary supplier's gasoline pool shall not be less than 5% of the gasoline pool.

(2) Reserved.

[A PLACE-HOLDER IS UNDER DEVELOPMENT]

The final requirement for renewable fuel in a primary supplier's distillate pool will be put into place by anamendment. The provisions could be of the following form:

Effective "DATE", for the purposes of section 139 of the Act, the quantity of renewable fuel in a primary supplier's distillate pool shall not be less than 2% of the distillate pool.

[where "DATE" will be determined at a later time]

Calculation of Pools

4. (1) Effective September 1, 2010, and subject to subsections (3) to (10), a primary supplier shall calculate its gasoline pool specified in subsection 3(1) as the volume of all gasoline, in litres, identified pursuant to section 9, as pool gasoline during the gasoline compliance period.

(2) Effective September 1, 2010, and subject to subsections (3) to (10), a primary supplier shall calculate its distillate pool specified in subsection 3(2) as the volume of all diesel fuel and heating distillate fuel, in litres, identified pursuant to section 9, as pool distillate during the distillate compliance period.

(3) In calculating its gasoline or distillate pool a primary supplier may exclude the volume of gasoline, diesel fuel or heating distillate oil, as the case may be, that was exported by the primary supplier or an affiliate during the gasoline compliance period or the distillate compliance period, as the case may be.

(4) Provided subsections (8) or (9) or paragraph (10)(b) do not apply, in calculating its gasoline pool, a primary supplier may either:

(a) exclude the volume of renewable fuel that was contained in each batch of gasoline that it identified pursuant to section 9 as pool gasoline, as recorded pursuant to section 10; or

(b) in the case of producing fuel from bio-crude, subtract from the pool a volume equal to 70 percent of the volume of bio-crude that it used as feedstock during the gasoline compliance period, as recorded pursuant to section 19.

(5) Provided subsections (8) or (9) or paragraph (10)(b) do not apply, in calculating its distillate pool, a primary supplier may either:

(a) exclude the volume of renewable fuel that was contained in each batch of diesel fuel or heating distillate oil that it identified pursuant to section 9 as pool distillate, as recorded pursuant to section 10; or

(b) in the case of producing fuel from bio-crude, subtract from the pool a volume equal to 30 percent of the volume of bio-crude that it used as feedstock during the distillate compliance period, as recorded pursuant to section 19.

(6) Where a primary supplier imports a batch of fuel identified under section 9 as pool gasoline or pool distillate, and delivers it to a production facility that it owns, the primary supplier may count the volume of fuel only once and exclude under paragraph (4)(a) the volume of renewable fuel only once in calculating its gasoline pool or distillate pool, as the case may be.

(7) Where a primary supplier dispatches from a production facility that it owns a batch of fuel identified under section 9 as pool gasoline or pool distillate and delivers it to another production facility that it owns, the primary supplier may include the volume of fuel only once and exclude under paragraph (5)(a) the volume of renewable fuel only once in calculating its gasoline pool or distillate pool, as the case may be.

(8) Subject to subsection (10), where a primary supplier imports a batch of fuel identified under section 9 as pool gasoline or pool distillate and delivers it to a production facility owned by someone else, the primary supplier may exclude the volume of fuel in calculating its gasoline pool or distillate pool, as the case may be.

(9) Subject to subsection (10), where a primary supplier dispatches from a production facility that it owns a batch of fuel identified under section 9 as pool gasoline or pool distillate and delivers it to a production facility owned by someone else, the primary supplier may exclude the volume of fuel in calculating its gasoline pool or distillate pool, as the case may be.

(10) Where the primary supplier delivering the batch referred to in subsection (8) or (9) owns it at the time of delivery to the production facility, the batch is processed at that facility under an agreement, and the resulting volume is owned by the primary supplier at the time it is dispatched:

(a) the primary supplier shall include the volume of fuel of the batch that it originally imported or dispatched in calculating its gasoline pool or distillate pool, as the case may be; and

(b) the owner of the production facility referred to in subsection (8) or (9) may exclude the processed volume of fuel referred to in this subsection that is dispatched from its facility in calculating its gasoline pool or distillate pool, as the case may be.

Quantity of Renewable Fuel

5. (1) Subject to Part 2, the quantity of renewable fuel in the primary supplier's gasoline pool referred to in subsection 3(1), shall be calculated using the formula:

RFGAS is the quantity of renewable fuel in the primary supplier's gasoline pool, in litres;

CREGAS is the sum of all gasoline compliance units created by the primary supplier during the gasoline compliance period pursuant to subsections 14(1), (2), (5) and (9);

RECGAS is the sum of all gasoline compliance units created during the gasoline compliance period that were received by the primary supplier from other trading system participants, pursuant to section 16, during the trading period;

TRFGAS is the sum of all gasoline compliance units created during the gasoline compliance period that were transferred by the primary supplier to other primary suppliers, pursuant to section 16, during the trading period;

CANGAS is the sum of all gasoline compliance units cancelled by the primary supplier during the gasoline compliance period pursuant to subsection 17(2); and

DTGDG is the sum of all distillate compliance units created during the gasoline compliance period, if any, owned by the primary supplier at the end of the trading period, that the primary supplier identifies in the report required under section 8 for use in meeting the requirements for its gasoline pool referred to in subsection 3(1).

(2) Subject to Part 2, the quantity of renewable fuel in the primary supplier's distillate pool referred to in subsection 3(2), shall be calculated using the formula:

RFDIS is the quantity of renewable fuel in the primary supplier's distillate pool, in litres;

CREDIS is the sum of all distillate compliance units created by the primary supplier during the distillate compliance period pursuant to subsections 14(3), (4), (5) and (11);

RECDIS is the sum of all distillate compliance units created during the distillate compliance period that were received by the primary supplier from other trading system participants, pursuant to section 16, during the trading period;

TRFDIS is the sum of all distillate compliance units created during the distillate compliance period that were transferred by the primary supplier to other primary suppliers, pursuant to section 16, during the trading period;

CANDIS is the sum of all distillate compliance units cancelled by the primary supplier during the distillate compliance period pursuant to subsection 17(2); and

DTGDD is the sum of all distillate compliance units created during the distillate compliance period, if any, that the primary supplier used to meet the requirements for its gasoline pool referred to in subsection 3(1).

Method for Measuring Volumes of Fuels

6. (1) Subject to subsection (2), all volumes of fuels referred to in these Regulations shall be measured by meters that quantify the volume of a liquid fuel and have been calibrated to industry standards at least once every 3 months by a person independent of the primary supplier, the renewable fuel producer or the blender, as the case may be.

(2) In the case of an importer, the importer must have written evidence documenting that the volumes have been measured in accordance with industry standards.

(3) All volumes measured for the purpose of these Regulations shall be rounded to the nearest whole litre, or if the volume is equidistant from two whole litres, to the highest of them.

Registration as a Primary Supplier

7. (1) A primary supplier shall submit a report to the Minister by the latter of August 15, 2010 and 1 day before commencing to produce or import gasoline, diesel fuel or heating distillate oil.

(2) The report submitted under subsection (1) shall contain

(a) the name and civic address of the primary supplier;

(b) the name, civic address and telephone number of the authorized official;

(c) the name and telephone number of a contact person, if different from the authorized official;

(d) for each production facility at which the primary supplier produces gasoline, diesel fuel or heating distillate oil,

(i) the civic address and name, if any, of the facility, and

(ii) the volumes, if known, of finished gasoline, unfinished gasoline, diesel fuel and heating distillate oil produced by the primary supplier in the year preceding the year of this report for each of those facilities;

(e) for each facility at which blending of renewable fuel with a liquid petroleum fuel occurs and the primary supplier owns the resulting blended fuel,

(i) the civic address and name, if any, of the facility, and

(ii) for each type of liquid petroleum fuel with which renewable fuel is blended by the primary supplier at the facility,

(A) the volume, if known, of the liquid petroleum fuel with which renewable fuel was blended in the year preceding the year of this report,

(B) the volume if known, of the renewable fuel blended in the year preceding the year of this report, and

(C) the type of renewable fuel, and, if known, the renewable fuel feedstock type used to produce the renewable fuel;

(f) for each facility at which bio-crude is used by the primary supplier as feedstock to produce liquid fuel,

(i) the civic address and name, if any, of the facility, and

(ii) for each type of bio-crude used by the primary supplier as a feedstock at the facility,

(A) the renewable fuel feedstock type used to produce the bio-crude, and

(B) the volume, if known, of bio-crude used as a feedstock at the facility in the year preceding the year of this report;

(g) for each province into which the primary supplier may import gasoline, diesel fuel or heating distillate oil,

(i) the province of importation,

(ii) the volumes, if known, of finished gasoline, unfinished gasoline, diesel fuel and heating distillate oil imported by the primary supplier in the year preceding the year of this report,

(iii) the volume, if known, of renewable fuel in the fuel imported by the primary supplier during the year preceding the year of this report, and

(iv) the type of renewable fuel and, if known, the renewable fuel feedstock type used to produce the renewable fuel by the primary supplier;

(h) for each province into which the primary supplier may import liquid petroleum fuel, other than gasoline, diesel fuel or heating distillate oil, containing a renewable fuel and for each type of such petroleum fuel imported,

(i) the province of importation,

(ii) the volume, if known, of the fuel imported by the primary supplier during the year preceding the year of this report,

(iii) the volume, if known, of renewable fuel in the fuel imported by the primary supplier during the year preceding the year of this report, and

(iv) the type of renewable fuel and, if known, the renewable fuel feedstock type used to produce the renewable fuel by the primary supplier;

(i) except for an importer, the location within each facility of the meters that will be used by the primary supplier to measure the volumes as required under these Regulations; and

(j) the civic addresses at which records required under these Regulations will be kept.

(3) If the information provided in the report required under subsection (1) changes, the primary supplier shall submit to the Minister an update to the report no later than 5 days after the change.

(4) The volumes referred to in paragraphs (2)(d), (e), (g) and (h) shall not include the volume of fuel for use in aircraft, competition vehicles, scientific research or Zone TNL or volume of fuel for export or in transit through Canada.

Compliance Period Report by Primary Suppliers

8. (1) For each gasoline compliance period or distillate compliance period a primary supplier produces or imports gasoline, diesel fuel or heating distillate oil, the primary supplier shall submit to the Minister a report on or before February 15 of the following year.

(2) A report submitted under subsection (1) shall contain

(a) the name and civic address of the primary supplier;

(b) the quantity, in litres, of the gasoline pool and the parameters described in section 5 as RFGAS, CREGAS, RECGAS, TRFGAS, CANGAS and DTGDG;

(c) the quantity, in litres, of the distillate pool and the parameters described in section 5 as RFDIS, CREDIS, RECDIS, TRFDIS, CANDIS and DTGDD;

(d) for each production facility and each province of importation referred to in the report required under section 7, the volume, in litres, of fuel produced at the facility during the compliance period or imported into the province during the compliance period, for:

(i) finished gasoline

(ii) unfinished gasoline,

(iii) diesel fuel, and

(iv) heating distillate oil; and

(e) the additional information required in sections 20, 22 and 23, where applicable.

(3) The volume referred to in paragraph (2)(d) shall not include the volume of fuel identified under section 9 for use in aircraft, competition vehicles, scientific research or Zone TNL or volume of fuel identified under section 9 for export or in transit through Canada.

(4) Subsection (1) does not apply to a primary supplier that does not produce or import gasoline during a gasoline compliance period or distillate compliance period, unless the primary supplier has submitted a notice of election under subsection 3(3) and produces or imports diesel fuel or distillate heating oil during the compliance period, or creates or exchanges any compliance units during that compliance period.

Record of Type of Fuel

9. (1) Subject to subsection (3), a primary supplier may, before dispatching a batch of gasoline, diesel fuel or heating distillate oil from a production facility that it owns, or importing a batch of gasoline, diesel fuel or heating distillate oil, identify and record the batch of fuel, as appropriate to the type of fuel, as

(a) pool gasoline or pool distillate;

(b) gasoline, diesel fuel or heating distillate oil for use in aircraft;

(c) gasoline, diesel fuel or heating distillate oil for use in competition vehicles;

(d) gasoline, diesel fuel or heating distillate oil for use in scientific research;

(e) except for diesel fuel or heating distillate oil for use in Newfoundland and Labrador, gasoline, diesel fuel or heating distillate oil for use in Zone TNL;

(2) Any batch of gasoline, diesel fuel or heating distillate oil dispatched by a primary supplier from a production facility that it owns, or imported by a primary supplier, that has not been identified and recorded under subsection (1) is considered, for the purposes of these Regulations, to be have been identified as pool gasoline or pool distillate, as the case may be.

(3) Every primary supplier shall maintain a record that establishes that each batch that it identified under any of paragraphs (1)(b) to (g) was sold or delivered for the use appropriate to the identified type.

General Records by Primary Suppliers

10. A primary supplier shall make a record for each batch identified under section 9 as pool gasoline or pool distillate that includes

(a) the volume of the batch, in litres;

(b) the volume of renewable fuel in the batch, in litres;

(c) the date or dates on which the primary supplier dispatched or imported the batch;

(e) the production facility at which the batch was produced or the province into which the batch was imported.

Retention of Records

11. Every person required to make a record under these Regulations shall maintain the record in Canada for a period of 5 years after the date on which the record is made.

Submission of Samples, Records and Reports

12. (1) At the Minister's request, any person who produces, imports or sells gasoline, diesel fuel, heating distillate oil, renewable fuel or bio-crude, or liquid petroleum fuel to which renewable fuel has been blended, or offers it for sale, shall submit to the Minister

(a) a sample of the fuel or bio-crude;

(b) a copy of any record required to be kept by the person under these Regulations; and

(c) the name and civic address of any person from whom the fuel or bio-crude was acquired and the date of acquisition.

(2) Each report and notice submitted under these Regulations shall

(a) include the person's registration number, if the Minister has provided the person with any, and in respect of information requirements pertaining to a specific facility or province of importation, the registration number for the facility or province of import, if the Minister has provided the person with any;

(b) be signed or electronically signed by the authorized official, except for the report by an auditor required under section 23; and

(c) be submitted electronically to the Minister in the format provided by the Minister, but the report or notice shall be submitted in writing if

(i) no such format has been provided, or

(ii) it is, owing to circumstances beyond the person's control, impractical to submit the report electronically in the format provided.

(3) The written reports and notices referred to in paragraph (2)(c) shall be submitted to the Minister in a format provided by the Minister, unless no such format has been provided.

(4) Any primary supplier that during a gasoline compliance period or a distillate compliance period only produces or imports fuel for use in aircraft, competition vehicles, scientific research or Zone TNL need not submit the reports required for that compliance period under sections 7 or 8.